In 2014 the Madrid-based think-tank Real Instituto Elcano carried out a study which looked at how selected countries thought other countries perceived them, and then compared the results with how they are really seen. At one end of the scale were the Russians, who greatly overestimated how others view them. At the other end was Spain, of which the world has a much more positive view than the Spanish themselves realize. Nothing wrong with modesty, but Spain has many areas of excellence on which Spaniards shouldn’t be shy about shining a light. Take healthcare. Spain’s public health system obviously isn’t immune to problems of under-funding and growing demand; but it copes admirably well. Bloomberg ranks the Spanish system as the most efficient in Europe, and third in the world after Hong Kong and Singapore. Its medical schools are demanding and respected, turning out well-trained and highly sought-after doctors. And what better proof of a decent health system than having one of the longest-living populations in the world? Should you happen to need a life-saving organ transplant, Spain is the best place to be on the planet, and has been for the last 25 years. In 2015, 4,769 transplants were carried out from 1,852 donors. That’s equivalent to 36 transplants from deceased donors per million inhabitants – France managed 26 and Germany just 11. The figures for 2016 break new records:4.818 from 2.018 donors, or 43 per million inhabitants. A quarter of a century leading the world in transplants The key to success is organization. Hospitals have a specialized Intensive-care doctor responsible for identifying potential donors. Families of the dead donors are given...

We look at how Spain is rolling out the red carpet for UK finance companies, and at the demise of Banco Popular, sold for less than the price of a cup of coffee. Spain Tempts the City A year on from the Brexit vote and with negotiations just starting, UK business is having to adapt to an even higher degree of uncertainty than usual. Many companies in the UK’s financial sector may need to consider moving a part of their business to an EU country, and with cities all over Europe lining up to invite them in, in April the Spanish embassy in Belgrave Square hosted a packed event to explain why Spain should be on their list as a possible destination. Much more to Madrid than blue sky A high-profile team, including Sebastian Albella, the Head of The National Securities Market Commission (CNMV in Spanish), Carlos Bastarreche, the new Spanish ambassador, senior officials from the treasury and representatives of the inward investment agencies, was assembled to sell the country’s attractions. The CNMV, together with the Bank of Spain, is responsible for overseeing the financial sector. The regulatory environment is a key factor in any decision on relocation, and many came away with a good impression of the Spanish set-up under Albella. While not letting up on its supervisory responsibilities, the Commission now sees itself as an integral part of the pitch to attract inward investment, by making life as easy as possible for incoming companies. With its new Welcome Programme, an English speaking advisor is assigned to guide companies throughout the application process and beyond, establishing a 15 day pre-authorisation phase and aiming to give a final green light within...

In this edition we look at how dark clouds are gathering for Spanish PM Rajoy, and we recommend two temporary exhibitions that visitors to Madrid shouldn’t miss. Not that strong or stable… A year on from the last elections and with the economy on the mend, life should be reasonably uncomplicated for Prime Minister Mariano Rajoy and his centre-right People’s Party (PP) – but it’s not. A storm is brewing, and the fragile stability of his minority Government faces challenges which, together with the uncanny ability of his party colleagues to get caught up in alleged financial transgressions, could complicate its existence. The Budget First, the Government needs to get the budget bill through parliament. Nearly 40 seats short of a majority, Rajoy has few options – the Socialists (PSOE), far left Podemos and all the Catalan Nationalists will vote against. He therefore needs to secure the backing of the centrist Ciudadanos, and has also turned to the Basque Nationalist party (PNV), willing to support in exchange for a big reduction in what the Basques pay back to the state; in other words, for money. That won’t please Ciudadanos, who may wave the budget through but will oppose any bill to change the Basque Country’s already privileged tax arrangements; and with the government still needing support from a Canary Islands’ regional party, it’s not home and dry yet. In Spain, if a budget isn’t approved in parliament the existing one automatically rolls over, so state business doesn’t completely grind to a halt. But the government’s hands would be tied and new initiatives that require funding couldn’t go ahead; finance from the central Government to the...

In this edition we look at how Spanish banks are being given a hard time by the Courts, and wonder whether two big construction projects planned in Madrid will ever get off the ground. Mortgage “floor” clauses ruled illegal Who wouldn’t feel good about getting money back from a bank? Anyone with a mortgage in Spain – even if it’s been paid off – may do well to check whether the loan agreement contains a “floor” clause. If it does, you may be in for a refund. Floor clauses would typically set the minimum rate applicable to a loan at around 4%. When Euribor dropped to zero and below, many borrowers were left paying an effective margin of 3-4%. In May 2013 the Spanish High Court ruled that these clauses were abusive, but that the banks only need compensate customers for payments made after the date of its ruling. In December 2016 the European Court of Justice agreed with the verdict but ordered the banks to repay the ‘unfair’ earnings from the start of the loan. In practice few of these clauses would have kicked in before about 2009, when Euribor dipped sharply, but for someone with a 25 year, €250,000 mortgage, the overpayments can run to €4,200 a year. This could cost the banks around €4bn. BBVA announced a hit of €404m in its 2016 accounts. Banco Popular, in the middle of a complex recapitalization exercise, calculated the impact at €334m. Caixabank has set up a department of 130 people to deal with claims, estimating losses of €625m. Banks might feel hard done by – after all, mortgages are signed before a Notary whose...

A documentary celebrates Spanish rugby’s pulling power An authorised voice warns that when it comes to Brexit, UK should not count too much on one of its best friends. Spanish rugby thinks big During the Seminci, Valladolid’s prestigious film festival held in October, 600 spectators packed the Carrión theatre to watch the first screening of Cuando Zorrilla fue Twickenham (When Zorrilla was Twickenham), a documentary about the Spanish rugby cup final, played last April. The two Valladolid clubs – SilverStorm El Salvador and VRAC Quesos Entrepinares – had both reached the final. The local rugby ground, which the two teams share, holds just 5,000. Hoping to attract 10-15,000 fans, the organizers sought the support of the city’s Mayor to play the match in the Jose Zorrilla stadium, home to the city’s football team. The 26,000 tickets were sold out a week after being put on sale. To put that into context, Valladolid’s soccer team, currently in the second division, are lucky to see 9,000 turn up for a home game. The last time the ground was full was for a Bruce Springsteen concert back in 2009. The film tells the history of the two clubs and follows the most veteran player of each team through the build-up to the final and the game itself. What made the match a worthy subject for a documentary was the way in which a game of rugby – still very much a minority sport in Spain – captured the imagination of the whole city and of rugby fans further afield. King Felipe’s presence added to the sense of occasion; the last time a Spanish...

As the polls closed on the evening of 27th June, Pablo Iglesias, the pony-tailed leader of the far left Podemos party, could be forgiven for picturing himself in the Moncloa Palace as the new Prime Minister of Spain. In the weeks leading up to the elections the opinion polls had his Unidos Podemos electoral alliance firmly in second place, clear of the Socialist PSOE and gaining on the conservative People’s Party (PP). The sum of Podemos and PSOE looked likely to exceed the 176 seats needed for a majority. And with his party as the largest force on the left, Iglesias would have had a strong claim to occupy the boss’s seat in a left-wing coalition. The corks started popping at the Podemos HQ when at 8pm the exit polls seemed to confirm the earlier predictions. But election results come in quickly in Spain, and by 10pm, with 10% of votes counted, things looked very different. In short, all the polls were wrong. The PP confounded the pundits by gaining nearly 700,000 new votes and 14 seats. Although still some distance from an overall majority, the party currently running the caretaker Government increased its lead over the PSOE to 52 seats. The PSOE crucially held on to second place, losing 5 seats but just 100,000 votes. Podemos had a disappointing night. Their electoral pact with the communist IU failed to provide the hoped-for lift, and despite maintaining their 71 seats, they shed over a million votes. The centrist Ciudadanos lost 8 seats to finish with 32. While the PSOE could at least console themselves on holding off the challenge from Podemos, it...